Factors influencing the adoption of internet banking: (special reference to the South Eastern Region, Sri Lanka)

Abstract

Internet banking plays a major role in banking sector. It seems that commercial banks has not yet attracted sufficient customers to use internet banking when compared with the other developed and developing countries in the South Eastern Region part of Sri Lanka. This study examines the factors influencing the adoption of internet banking services by commercial banks in the South Eastern region in Sri Lanka. The data were collected through questionnaire. The methodology espoused for this study is case study research approach for which the data gathered were quantitative. Theory was developed to identify the factors that influence the adoption of Internet banking. 227 respondents in South Eastern Region part of Sri Lanka were involved in this study. 51 were adopters who use internet baking. 176 were non adopters who do not use internet banking. Factor analyses and regression technique are used to study the relationship. The results of the model tested that use of internet banking in South Eastern Region part of Sri Lanka. The adoption/ non-adoption decision is highly influenced by attitude toward Change, Perceived benefits, perceived risks, Occupation, Users’ IT knowledge except Information on online Banking. Only information on online banking did not affect intention to use internet banking service in the mentioned research area. The results also propose that age, gender and occupation are significantly relate with internet banking behaviour. Finally, this paper recommend that understanding the factors influencing the adoption of internet banking is very significant to the commercial Banks and Bank managers can make use of these information to advance appropriate strategies to attract new customers to use Internet banking in future.